Smart Money July/August

Welcome to our July/August edition of Smart Money.

When your employees are planning for their retirement, it’s important to keep in mind that pension savings can be a critical part of their financial strategy and are essential for ensuring a comfortable retirement. Many people find pension rules confusing, but on page 03, we’ll look at what recent changes to the rules could mean for your employees.

On page 05, we explore a recent analysis of FCA figures. Since 2015, individuals aged 55 and over with defined contribution (DC) pension pots have had the freedom to decide how to manage their pensions. It is no longer compulsory for them to purchase an annuity (a guaranteed income for life). We look at how people have used this new freedom and the tax implications that have arisen as a result.

Nobody wants to consider what could happen if they became too ill to support their family. Financial protection could be essential to creating a secure future for your employees loved ones, but understanding what cover they may need can be confusing. Find out more on page 08 about the types of financial protection available and the financial impact these could have on your employees and their families.

On page 11, we look at ways your employees could potentially reduce a Capital Gains Tax (CGT) liability, from using their annual exemption to saving in an Individual Savings Account (ISA). Cuts to the CGT exemption mean that arranging their investments as tax-efficiently as possible is more important than ever

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Get in touch

As an employer, ongoing financial education can be beneficial, if you’d like to learn more about how you can support your employees with their financial wellbeing, we can help.

Email info@second-sight.com or call us on 0330 332 7143.

A pension is a long-term investment not normally accessible until age 55 (57 from April 2028 unless the plan has a protected pension age).

The value of your investments (and any income from them) can go down as well as up, which would have an impact on the level of pension benefits available.

Your pension income could also be affected by the interest rates at the time you take your benefits.

The Financial Conduct Authority doesn’t regulate trust planning and most forms of inheritance tax (IHT) planning.

Some IHT planning solutions put your money at risk, and you may get back less than you invested. IHT thresholds depend on individual circumstances and the law. tax and IHT rules may change in the future.

The tax treatment is dependent on individual circumstances and may be subject to change in future.